House prices drop for second month in a row

Property values fell 0.2% in September  and annual price growth is at its lowest since 1996

HOMEOWNERS have seen the value of their properties drop for two months in a row, the first time this has happened since 2000.

The average house price fell by 0.2% last month and by the same amount in August, according to Nationwide building society’s latest survey.

The dip, which puts the value of the average home at £156,517 against £153,727 this time last year, takes the annual rate of growth to just 1.8%, its lowest level since May 1996.

This downbeat view is consistent with the results of a separate survey from Hometrack, which polls estate agents. It recorded a 0.1% drop in house prices last month and has registered declines for the past 15 months.

John Wriglesworth of Hometrack said: “Supply continues to outstrip demand, but while another boom in house prices is not a prospect at the moment, we believe a price crash can also be ruled out.”